Monday, July 15, 2024

EFG Hermes Brings Historic Power Move: The Multi-Million Dollar Stake Acquisition of Elsewedy Electric by Electra Investment Holding


EFG Hermes Spearheads Electra’s Major Stake Deal in Elsewedy Electric

EFG Hermes has once again underscored its leadership in the investment banking sector in the Middle East and North Africa (MENA) by successfully facilitating a significant acquisition for UAE’s Electra Investment Holding. The landmark $449 million deal sees Electra acquiring a 19.98% stake in Elsewedy Electric, a pivotal player in delivering comprehensive energy and infrastructure solutions across the region.

As the sole financial advisor, EFG Hermes played a crucial role in the completion of this transaction. Electra’s ambition was evident in its initial Voluntary Tender Offer to acquire up to 24.5% of Elsewedy Electric at $1.05 per share. This strategic move has allowed Electra to secure a substantial portion of Elsewedy Electric’s shares, marking it as one of the pinnacle transactions overseen by EFG Hermes within the calendar year.

Maged El Ayouti, Co-Head of Investment Banking of EFG Hermes, expressed his pride in the firm’s involvement, highlighting it as one of the largest Foreign Direct Investment (FDI) Merger and Acquisition (M&A) transactions in Egypt and the broader region for the year. El Ayouti emphasized the significance of this deal, noting it as a continuation of EFG Hermes’s streak in advising on high-profile cross-border transactions. With a total M&A deal value exceeding $2.4 billion over the last nine months, EFG Hermes has firmly established its dominance and expertise in the investment banking landscape.

El Arouti also reflected on some of the landmark acquisitions the firm has advised on, including the acquisition by ICON Holding of seven historical hotels in Egypt. The breadth of transactions showcases not only the firm’s capability to navigate complex deals but also its commitment to fostering economic growth in the region.

Elsewedy Electric, established in 1997, has made a name for itself by providing a wide array of products and services, from the manufacturing of electric cables, poles, towers, and transformers, to the design, construction, operation, and maintenance of power plants. Its extensive global presence, spanning over 70 countries and bolstered by production facilities in Saudi Arabia and Algeria, showcases the company’s adaptability and resilience in overcoming market and economic challenges.

This acquisition by Electra not only marks a pivotal moment for Elsewedy Electric but also stands as a testament to EFG Hermes’s robust capabilities in efficiently managing substantial transactions. It reinforces both firms’ dedication to the continuous growth and development of the MENA region’s economy. With a pipeline full of promising transactions, EFG Hermes is poised to navigate and facilitate further investments, reflecting the growing investor interest in acquiring market-leading corporates.

The successful conclusion of this deal by EFG Hermes highlights the firm’s trusted expertise in the investment banking realm, setting the stage for future acquisitions and fostering a landscape of economic prosperity in the MENA region.

Alexandra Bennett
Alexandra Bennett
Alexandra Bennett is a seasoned business journalist with over a decade of experience covering the global economy, finance, and corporate strategies. With a Bachelor's degree in Economics and a Master's in Business Journalism from Columbia University, Alexandra has built a reputation for her insightful analysis and ability to break down complex economic trends into understandable narratives. Prior to joining our team, she worked for major financial publications in New York and London. Alexandra specializes in mergers and acquisitions, market trends, and economic

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